INKSURE Technologies

1. INKSURE Technologies Brand Protection & Authentication Solutions Confidential Information

2. INKSURE Technologies • Provider of covert, machine readable brand security solutions • The verification process is based on proprietary authenticators that provide instant, reliable, forensic-quality results • INKSURE’s taggant technology is applied to tens of billions of consumer items and high-value documents annually • Established in 1999; U.S. public corporation (INKS.OB) - SEC regulated • Corporate Headquarters in NYC; Global R&D Center at the Science Park in Rehovot, Israel

3. Brand Protection Solutions

4. Covert Machine Readable Technology • Optical taggantsthat are not visible to the human eye • Mixed with the brand owner’s own Inks & varnishes • Flexo, Offset, Gravure, Screen, TTR, Pad, Hot Ink Roll, Inkjet • Authenticated by a handheld, battery operated, portable reader • The reader gives a positive response – not subject to Human Interpretation • Many custom security formulations available • Enhances overt authentication Security • No visible response to UV excitation • No IR up converters • No false accepts

5. How Does It Work? • Each item is invisibly marked with INKSURE’s SmartInk during standard printing production • Although visually identical to regular ink or varnish, SmartInk includes a covert taggant code • The code is customer/application exclusive • INKSURE’s range of proprietary readers are used to conclusively authenticate products and documents by detecting electro-optical material behavior, identifying the code and providing on-the-spot pass/reject indication

6. SmartInk Covert Applications • SmartInk can be applied to almost any substrate – paper, plastic, foils, laminate, thermal transfer ribbon etc. • SmartInk utilizes standard printing processes & infrastructure such as offset, inkjet etc. “If it can be colored, coated, printed, or packaged, INKSURE can protect it”

7. SignaSure Handled Readers • A sophisticated optical authentication reader, analyzing complex spectral signatures • Each reader can store up to 10 codes to detect different marked applications • Forensic Level Authentication- up to 75 data points • Configured for each customer/application • Simple & intuitive user interface; light weight, ergonomic design • Clear audible and visual confirmation/alert within seconds • Rechargeable batteries; USB connectivity

8. PocketSure Handled Readers • A new, pocket-size reader for field authentication • Size: 5.5” x 1.1” • Weight:2.5 ounces • Highly accurate 10 point data count • Lower-cost for high volume distribution • Warehouses • Law Enforcement • Retail Locations • Multiple codes in memory • Audio tone and visual (red/green LED) only, no LCD screen • Replaceable batteries, no charging circuits

9. SortSure – In Line Process Control • Continuous hands free feedback • Effective cost monitoring capability • Data collection for future QA reference or evidence

10. CodeSure – Barcode & Taggant Reader • Detection of overt, covert and mixed symbols printed utilizing tagged and untagged inks • Will read 1D 2D barcodes, OCR etc. • Onboard database • Track & Trace data is stored locally (USB/Micro SD attachments) for quick lookup (eliminates the need for connectivity to a remote server)

11. Target Market

12. INKSURE’s Targeted Verticals INKSURE is focused on four distinct verticals: • Security Integrators (government & security products) • Hologram Manufacturers • Label Manufacturers • Security Printers • In each vertical INKSURE has successful large scale implementations & reference customers

13. Security Integrator – Case Study • The Ukraine Tax Stamp (2008 – Current) • Ukraine Population: 50M • Tobaccos & Alcohol consumption – several billions items annually • Security Integrator – EDAPS Corporation (Ukraine Based) • Introduction of INKSURE’s covert taggants + distribution of >1,300 readers to tax inspectors • Successful integration resulted in an immediate increase of ~30% in tax revenues • EDAPS distributed a case study detailing the project success • The Secretary General of the World Customs Organizations singled out the Ukrainian tax stamp project

14. Security Integrator – Tax Stamp Applications • SmartInk can be applied to a Tax Stamp via any of the following: • Hotstamp hologram tagged by SmartInk • Background design by using SmartInk Intaglio or clear overcoat for a yes/no authentication • SmartInk Inkjet for yes/no authentication of serial numbering • SmartInk Sequential for group level tracking (manufacturer, • designated markets, etc.) • Multiple reading configurations: • Field Forensic SignaSure for authorized customs personnel • Handheld PocketSure for supply chain authentication • High speed SortSure with counting capabilities for production

15. Hologram Manufacturer– Success Case • European Partner (Italy) • Insertion of INKSURE’s taggants into hologram base foils • Producing over one million meters of tagged base foils annually • Producing several billions of hotstamp holograms annually • Tagged holograms are very durable and can provide accurate covert results for several years • INKSURE’s team works closely with manufacturer to ensure a seamless & consistent process

16. Label Manufacturer– Success Case • US based partner – confidential • Insertion of INKSURE’s taggants into label base foils • Labels are applied to electronic products & accessories • Producing several billions labels annually • Label are being distributed globally (mainly to china)

17. Security Printer – Banknote Project • A Central Bank (OECD member) • Addition of INKSURE’s taggant to a specific area in the banknote • Taggant and & designated area – known only to the central banks • Successful integration at the Security Printer’s facility in Switzerland • INKSURE implemented SortSure to automatically verify large quantities of banknotes at the Central Banks safes • Banknote rollout is expected during 2011

18. INKSURE Brand Protection - Summary • Highly experienced and execution-oriented management team • Solutions protect tens of billions of consumer items and high-value documents annually • Proven large scale implementations of tax stamps, holograms and security labels projects • Strong & long term relations with local integrators especially in Eastern & Central Europe